This from Jeff Clark of Casey's Gold & Resource Report sent along a reference from the Bearish News website, quoting an October report from Hayman advisors.

"There have been 28 episodes of hyperinflation of national economies in the 20th century, with 20 occurring after 1980. Peter Bernholz (Professor Emeritus of Economics in the Center for Economics and Business (WWZ) at the University of Basel, Switzerland) has spent his career examining the intertwined worlds of politics and economics with special attention given to money."



"In his most recent book, Monetary Regimes and Inflation: History, Economic and Political Relationships, Bernholz analyzes the 12 largest episodes of hyperinflations – all of which were caused by financing huge public budget deficits through money creation. His conclusion: the tipping point for hyperinflation occurs when the government’s deficit exceeds 40% of its expenditures. Guess what? The U.S. will hit the 40% mark in 2009.”

I assume you know what hyperinflation does to the price of gold?

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This comment from Rick's Picks further reinforces my contention that this thing is gonna get much worse before it gets better.

A recent Wall Street Journal story explains that the airlines’ strategy is to ground as many planes as it takes to keep the supply of seats tight. That means layoffs and unpaid furloughs for pilots, flight attendants, baggage handlers, mechanics and other personnel.

And the cycle continues to feed on itself as every round of layoffs further curtail consumer spending which breeds more layoffs.

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Foreclosures: 'Worst three months of all time'
NEW YORK (CNNMoney.com) -- Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.

"They were the worst three months of all time," said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.

During that time, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.